Microsoft also building its own Windows Phone 8 device

Microsoft surprised everyone this week with its own in-house designed Windows 8 Surface tablet and now it looks like the company is set on making its own Windows Phone 8 handset as well. According to Nomura analyst Rick Sherlund, industry sources say that Microsoft is currently working with a contract manufacturer to develop its own device for Windows Phone 8.

Sherlund released the below note regarding the development:

Separately, our industry sources tell us that Microsoft may be working with a contract manufacturer to develop their own handset for Windows Phone 8. It is unclear to us whether this would be a reference platform or whether this may be a go-to market Microsoft branded handset. We would not be surprised if Microsoft were to decide to bring their own handset to market next year given that Microsoft has decided to bring to market their own Windows 8 ‘Surface’ tablet/PC products.

Although initially it seemed like Microsoft was pulling an Apple move by reigning in control of hardware, the new strategy may be more akin to Google's Nexus efforts, which serve more as a model for manufacturing partners. The decision to jump on hardware could also have to do with the imploding Nokia, which was originally intended to be Microsoft's major hardware partner.